Investor Glossary-overvaluedInvestor Glossary-overvaluedInvestor Glossary-overvaluedInvestor Glossary-overvaluedInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Overvalued

The HTML to link to this page
 

A stock is overvalued if its current price exceeds the intrinsic value of the stock. A stock perceived by the market as being overvalued is not likely to appreciate in value until it is no longer perceived as being overvalued. There are many ways to determine if a stock is overvalued. Many investors look at a stock's price earnings ratio (PE ratio) when determining an overvalued condition. A high PE in relation to its historic PE ratio may indicate an overvalued condition, or a high PE in relation to peer stocks can also indicate an overvalued stock. Other common measures of an overvalued stock include a comparison of stock price against a company's cash flow, projected earnings, book value, dividend ratio, etc.



Rate this overvalued definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: labor relations, in escrow, command economy, class C shares, ex-dividend date, limit order, balance sheet, LIBOR, implied volatility, required rate of return, stock market close, APR, margin rate, Zero Cost Collar, phantom income, 1035 exchange, retained earnings, inflation, diluted share, VIX, real GDP, annual return, current ratio, dividends payable, risk management, quality assurance, FTSE, EBITDA, irrevocable trust, deferred revenue, stock split, deferred tax, FICO score, reverse mortgage, option premium, wholly-owned subsidiary, average price per share, debt service coverage, 1031 exchange, cancelled check, minority interest, liquidity ratio, 401a, 144a, covered put, Key Rate Duration, ex-dividend, open position, per diem


Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use